Elon Musk, you had our attention, now tell us why we should care. His artificial intelligence venture, xAI, will be absorbed by the social media platform X, formerly known as Twitter. This shrewd acquisition was unveiled via Musk’s own personal megaphone—X—in a post that emphasized the linked fates of both companies. The all-stock deal would leave xAI with an $80 billion valuation, while valuing X at $33 billion. Both companies are privately held and share major investors.
The biggest implication from the acquisition is the acceleration of artificial intelligence with social media. Specifically, it will use data from all users’ public posts on X to help train xAI’s models. The collaboration is already poised to change the face of X, as Grok—which happens to be another chatbot—has emerged as a dominant feature of the platform. This recent move would certainly be in step with Musk’s broader ambitions of building a smarter, more dynamic social media platform.
“xAI and X’s futures are intertwined.” – Elon Musk
While the impact of this merger is still to be seen, it underscores a greater trend: tech investments are trending towards AI and computing innovations. Paolo Pescatore, founder of market analysis firm PP Foresight, weighed in on this strategic play, calling it an obvious move with today’s market conditions.
“The move appears sensible, considering the current trend of increased investments in AI, data centres, and computing.” – Paolo Pescatore
This acquisition is a huge change for X, which Elon Musk bought for $44 billion in 2022. Both xAI and X aim to deliver enhanced experiences by focusing on artificial intelligence’s potential to revolutionize social media interactions.
“The combined company will deliver smarter, more meaningful experiences to billions of people while staying true to our core mission of seeking truth and advancing knowledge.” – Elon Musk